For those of you that have a bunch of "Phone" contacts that you want to convert to Google contacts, there is an app called Export Contacts available in the Market. It's pretty slick. It will export your contacts (Google, Exchange, Phone) to your SD card in a CSV file. Then just transfer that file from your SD card to your computer by mounting your SD card on your computer. Log into Gmail on the computer and upload that file to your Gmail contacts. Gmail should merge some of your newly imported contacts with your existing contacts. Then all you need to do is go to People-->Menu-->View and deslect Phone so that it won't show Phone contacts anymore. Another option is to actually delete all of those Phone contacts so that you don't have any confusion. I know I ran into problems with custom ringtones for people because I would set it for their Google contact and I had a duplicate Phone contact as well. Custom ringtones wouldn't sound when the contact would call because it was seeing the caller as the Phone contact rather than the Google contact. Also, you may want to do a manual sync after uploading the file to Gmail to make sure your new Google contacts make it over to your phone before you go deleting Phone contacts.
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